Walker, Incorporated Walker, Incorporated Uses Stock Options as a Compensation Incentive for Incentive

question 22

Essay

Walker, Incorporated
Walker, Incorporated uses stock options as a compensation incentive for its top executives. On January 1, Year 1, 25,000 options were granted, each giving the holder the right to acquire one $5 par common share. The exercise price is $60 per share. The vesting period is 4 years. Options vest on January 1, Year 5 and cannot be exercised before that date and will expire on December 31, Year 8. The fair value of the 25,000 options, estimated by an appropriate option pricing model is $50 per option.
-Refer to Walker Corporation. Make the journal entries to record compensation expense for Year 1.

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Definitions:

Sexual Relationships

Relationships that involve sexual intimacy or sexual activities between individuals.

Kinsey's Model

A scale developed by Alfred Kinsey to describe a person's sexual orientation based on their experiences or responses at a given time.

Sexual Orientation

A person's pattern of emotional, romantic, or sexual attraction to others, based on the gender(s) to which one is attracted.

Cohabitation

Living together in a romantic relationship without being married.